While Rome burns, the only thing Americans care about are their things and how much they can accumulate. This idea is ingrained in modern society. It starts with young children learning the word mine. I was raised in a different generation and if that word came out of my mouth, I would pump my milk. Now the new parents think that their little prince / princess can’t do anything wrong and is cute. This behavior has lasted into adolescence until a child gets his driver’s license and has the crazy idea that he is owed a new car. Well, all the other kids are given one, why shouldn’t they? So it’s college time and it’s not good enough to go to college, but a prestigious four-year college is more in line with how they grew up. This, my friends, is the rights generation and it is about self-gratification and bringing more things together. Rather than go into debt forever, these kids should wonder if college is really worth it. In America today, this generation of entitlements is creating a new bubble, it is the student loan bubble. In 2013, student loan debt topped a trillion dollars and with no jobs to help these graduates make payments, a dangerous bubble has been created that is about to burst. Currently, $ 124 billion of this debt is more than 90 days past due. But most kids don’t understand that they can’t even file for bankruptcy for this debt later in life if necessary. Bankruptcy could be in their future for sure, but this debt will follow them forever. So there’s one thing for sure, they’ll have their education and debt after filing for bankruptcy, so they don’t need to worry about losing that at least.
In this self-absorbed generation, these people will try to avoid filing for bankruptcy at all costs because they fear losing all their property if they do so. Truth be told, this is one of the things that should be filed under the myths and legends of filing for bankruptcy. I think the most corrupt creditors and debt collectors love to tell people stories about what will happen to them if they file for bankruptcy. This could be one of these stories that are told, because they know that if a person files, they will no longer even be able to contact that debtor. If they can scare the debtor, they will continue to make the minimum payments on their debts until they can no longer afford it. Although many of these people shouldn’t hold onto their belongings so tightly, it is rare for a person to be wiped out in a bankruptcy filing. When Congress created bankruptcy, they needed to make bankruptcy exemption laws that would allow a person to keep a generous amount of property or else the person would not have the fresh start that bankruptcy promises.
In recent years, many Americans have exercised their right to file for bankruptcy because of what happened to the economy after the housing bubble burst. People who file for bankruptcy can be assured that they will not lose all of their property when they file. This idea that the bankruptcy administrator wants to come to the filer’s house with a big truck and take everything to the exchange meeting is completely false. In today’s economy, the trustee will weigh the cost against the reward in taking any non-exempt property. Again, it is a good idea to hire a bankruptcy attorney to prepare the bankruptcy petition because they will know the ins and outs of the code and will be able to protect the maximum amount of property in the filing. There are two types of bankruptcy exemptions that an individual can select from, first are the federal exemptions which are very generic, then there are the state exemptions that most people choose. Although bankruptcy is under federal law, each state has its own bankruptcy exemptions and laws added to the code. The reason states have their own bankruptcy exemption laws is because sometimes the property can be region specific. For example, there could be an exemption in Kansas to protect a tractor that would not apply to someone living in New York City. In general, it is best to allow a bankruptcy attorney to decide which exemptions to use.